Question

1.At August 31, the company owed its employees $800 in salaries and wages that will be paid on September 1.

Dr. Salaries and Wages Expense  800

       Cr. Salaries and Wages Payable  800

2.On August 1, the company borrowed $30,000 from a local bank on a 15-year mortgage. The annual interest rate is 10%.

Dr. Interest Expense  250

       Cr. Interest Payable  250

3.Revenue for services performed but unrecorded for August totaled $1,100.

Dr. Accounts Receivable  1,100

        Cr. Service Revenue  1,100

Answer 1

Solution

Question 1.

Answer-----------The entry for the first adjustment to record salaries expense of $800 is absolutely correct.

.

Question 2

Answer-----------The entry is correct.

Amounts debited and credited are correct assuming adjustment is made on August 31. Interest expense will be debited for $250 and interest payable will be credited for $250. Following entry will be passed on december 31

General Journal	Debit	Credit
Interest expense	$ 250.00
Interest payable		$ 250.00

Question 3

Answer---------The adjusting entry passed is correct in all respects.

Accounts receivable will be debited and service revenue will be credited for $1100.